Latest news with #financialoutlook
Yahoo
15-07-2025
- Business
- Yahoo
Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next
Wolfspeed stock saw huge sell-offs across the first half of the year as its financial outlook worsened. The company issued disappointing sales guidance for its next fiscal year, and it did not receive the CHIPS Act funding that had been anticipated. Wolfspeed's share price has seen a big bounce early in this year's second half, but the stock could be headed for another collapse. 10 stocks we like better than Wolfspeed › Wolfspeed (NYSE: WOLF) stock saw massive sell-offs across the first half of this year's trading. The company's share price fell 94% across the first six months of 2025, according to data from S&P Global Market Intelligence. The valuation collapse occurred despite a 5.5% gain for the S&P 500 index across the stretch. Wolfspeed stock saw big pullbacks in conjunction with poor quarterly results, a weakening sales outlook, and rising expectations that that the company would file for bankruptcy. The silicon-carbide specialist did submit preliminary filings for Chapter 11 bankruptcy protections at the end of June. Wolfspeed's share price saw fluctuations that amounted to relatively little cumulative movement up until March -- when news hit that prompted huge selling action. For starters, the company announced that it was planning on cutting its capital expenditures (capex) for the next fiscal year by between $150 million and $200 million. It also said that it was aiming to cut capex for the fiscal year after that by between $30 million and $50 million. The cost-cutting move suggested that the silicon-carbide specialist was cutting back on growth initiatives and raised red flags among investors. Later in the month, the stock got hit with an even bigger bearish catalysts. Reports began to circulate that the $750 million in CHIPS Act funding that had been apportioned to the company through the bill would not be distributed due to policy shifts from the Trump administration. Wolfspeed has a large debt load and was looking at the CHIPS Act as a major source of funding, and news that the capital would not be arriving on the expected schedule prompted a big sell-off for its stock. Wolfspeed stock got hit with another round of big sell-offs in May when the company reported results for the third quarter of its 2025 fiscal year, which ended March 30. While the company reported a loss per share that was lower than Wall Street had anticipated, its sales for the period came in lower than anticipated. While the sales miss in fiscal Q3 was disappointing, the real kicker was management's revised guidance for the next fiscal year. Wolfspeed said that it now expected sales of roughly $850 million for the period, falling far short of the average Wall Street analyst estimate's call for sales of roughly $959 million in the period. The news added to concerns that Wolfspeed was heading for bankruptcy, and the company finally filed submitted preliminary Chapter 11 filings on June 30. Wolfspeed stock has actually had a big recovery really early in this year's second half. The surge for the company's valuation kicked off when the silicon carbide specialist announced that it was filing for preliminary Chapter 11 bankruptcy protections at the end of June. The bullish rally picked up even more steam after the company announced that Gregor van Issum would be its next chief financial officer. The stock is now up 260% in the second half of the year, but the gains could be unsustainable. Due to the company's bankruptcy filings, there's a large probability that the company's stock will be delisted from the New York Stock Exchange in the very near future. Wolfspeed shares will likely continue to trade over the counter, but there's a huge risk that its stock price will plummet upon delisting. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Stock Plummeted 94% in the First Half of 2025 -- and What Comes Next was originally published by The Motley Fool Sign in to access your portfolio
Reuters
08-07-2025
- Business
- Reuters
US consumers happier about finances, expect stable inflation, New York Fed says
NEW YORK, July 8 (Reuters) - Americans' outlook on inflation was little changed last month as households upgraded their views on the state of their finances and ability to get credit, according to a report released on Tuesday by the New York Federal Reserve. As of June, inflation one year from now was expected to be 3%, down from the expected 3.2% in May, while the outlooks at the three- and five-year-ahead horizons were unchanged at 3% and 2.6%, respectively, according to the latest New York Fed Survey of Consumer Expectations. Amid the calm outlook for future price increases, the survey found that respondents had "markedly" upgraded their assessment of their personal financial situation relative to last year, while noting credit had grown easier to access. Respondents also upgraded their expectations about the state of their financial situations a year from now. The survey found mixed expectations for future earnings and income in June, while the outlook for employment improved. Although the New York Fed found in its poll that the public's outlook for inflation was little changed last month, households projected in June an acceleration in year-ahead gains in the cost of gasoline, medical care, college and rent, while the expected rise in food costs held steady relative to May. Near-term inflation expectations recorded by the New York Fed have been volatile this year as President Donald Trump launched an aggressive trade war against many U.S. trading partners. The president's trade agenda, which features the imposition of high tariffs on imported goods, is widely expected to push up inflation and depress growth and hiring. Those import levies helped drive up near-term expected inflation, and as the president appears to have capitulated so far on the most draconian of his levies, worries about higher inflation have eased. Other surveys like the University of Michigan report on consumer sentiment have also shown reduced worries about future inflation. Meanwhile, long-term inflation expectations have remained mostly stable, which is good news for Fed officials, who believe that development suggests confidence that over the long run inflation will not be a major concern. Fed officials, however, are expecting higher inflation this year due to the tariffs, which they expect to wane starting next year. Fed officials penciled in two rate cuts for this year at their policy meeting last month but offered little guidance as to when that might happen. Some Fed officials were eyeing the July 29-30 policy meeting as a good time for a rate cut, but solid job market data for June appears to have taken that idea off the board. In comments after the June 17-18 meeting, Fed Chair Jerome Powell said "our obligation is to keep longer-term inflation expectations well-anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem."
Zawya
08-07-2025
- Business
- Zawya
US consumers happier about finances, expect stable inflation, New York Fed says
Americans' outlook on inflation was little changed last month as households upgraded their views on the state of their finances and ability to get credit, according to a report released on Tuesday by the New York Federal Reserve. As of June, inflation one year from now was expected to be 3%, down from the expected 3.2% in May, while the outlooks at the three- and five-year-ahead horizons were unchanged at 3% and 2.6%, respectively, according to the latest New York Fed Survey of Consumer Expectations. Amid the calm outlook for future price increases, the survey found that respondents had "markedly" upgraded their assessment of their personal financial situation relative to last year, while noting credit had grown easier to access. Respondents also upgraded their expectations about the state of their financial situations a year from now. The survey found mixed expectations for future earnings and income in June, while the outlook for employment improved. Although the New York Fed found in its poll that the public's outlook for inflation was little changed last month, households projected in June an acceleration in year-ahead gains in the cost of gasoline, medical care, college and rent, while the expected rise in food costs held steady relative to May. Near-term inflation expectations recorded by the New York Fed have been volatile this year as President Donald Trump launched an aggressive trade war against many U.S. trading partners. The president's trade agenda, which features the imposition of high tariffs on imported goods, is widely expected to push up inflation and depress growth and hiring. Those import levies helped drive up near-term expected inflation, and as the president appears to have capitulated so far on the most draconian of his levies, worries about higher inflation have eased. Other surveys like the University of Michigan report on consumer sentiment have also shown reduced worries about future inflation. Meanwhile, long-term inflation expectations have remained mostly stable, which is good news for Fed officials, who believe that development suggests confidence that over the long run inflation will not be a major concern. Fed officials, however, are expecting higher inflation this year due to the tariffs, which they expect to wane starting next year. Fed officials penciled in two rate cuts for this year at their policy meeting last month but offered little guidance as to when that might happen. Some Fed officials were eyeing the July 29-30 policy meeting as a good time for a rate cut, but solid job market data for June appears to have taken that idea off the board. In comments after the June 17-18 meeting, Fed Chair Jerome Powell said "our obligation is to keep longer-term inflation expectations well-anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem." (Reporting by Michael S. Derby; Editing by Paul Simao)
Yahoo
08-07-2025
- Business
- Yahoo
Molina Healthcare Lowers Full-Year Earnings Outlook Amid Medical Cost Pressures
Molina Healthcare (MOH) cut its full-year earnings outlook on Monday amid medical cost pressures acr Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
07-07-2025
- Business
- Bloomberg
FTSE 100 Live: UK Stocks Dip, Pound Slips Closer to $1.36
Here's a roundup of other companies reporting earnings today: Plus500: The online trading platform saw a slight dip in new customers during the first half, but its board remains confident in the outlook for 2025. Ferrexpo: The Ukraine-based iron ore miner said it has cut working time for employees in order to lower its costs to remain financially viable. Primary Health: The health care property investor reported a rise in net rental income for the first half, and said it sees a 'very encouraging outlook' ahead.
